Glossary

A Property Claim Law Associate (PCLA) is a designation offered by the American Educational Institute (AEI). It requires successful completion of both the AEI legal principles and property claims self-study programs.

A Property Claim Law Specialist (PCLS) designation is offered by the American Educational Institute (AEI). It requires successful completion of the AEI property self-study program.

Property damage (PD), as defined in the general liability policy and the homeowners policy, covers physical injury to tangible property including resulting loss of use and loss of use of tangible property that has not been physically injured. Also addressed in numerous other personal and commercial liability policies.

A property firewall is a fire-resistance-rated wall used to divide a building or separate adjoining buildings. This is done to prevent or slow the spread of fire, smoke, and heat from one area to another. To function as intended, a fire wall generally must be built and maintained in accordance with applicable building and fire codes, have protected openings, and retain sufficient structural stability during a fire. Property insurance underwriters may consider the presence, construction, continuity, and rating of a firewall as part of the underwriting process.

Property insurance is first-party insurance that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion. In this sense, property insurance encompasses inland marine, boiler and machinery, and crime insurance, as well as what was once known as fire insurance, now simply called property insurance: insurance on buildings and their contents.

Property transfer liability insurance covers the buyer of a property for third-party bodily injury (BI) and property damage (PD) claims and cleanup costs arising out of the environmental contamination of the property, but only for contamination that had not yet been detected as of the policy's inception date. Failure to disclose known contamination voids coverage with respect to that particular pollution incident.

Proportional liability refers to an arrangement for the assignment of liability in which each member of a group is held responsible for the financial results of the group in proportion to its participation.

Proportional reinsurance refers to premiums and losses that are calculated on a pro rata basis. The reinsurer has a fixed percentage of premium and the same percentage of losses.

Proration is the adjustment of policy benefits due to a change of exposure or existence of "other insurance."

A prospect in an insurance context is a potential buyer of insurance.